IT Services in telecom to touch $2769.3 million by 2017

by CXOtoday Staff    Oct 10, 2011

According to a Frost & Sullivan study, the Indian IT Services Market in the telecom vertical was estimated to be $ 911.57 million in 2010 and is expected to grow to $ 2769.3 million in 2017, with a Compound Annual Growth Rate (CAGR) of 17 percent.

The Operations Support Systems/Business Support Systems (OSS/BSS) dominate the IT services spend by Telecom Service Providers (TSPs), followed by network and security services, as per the findings.

According to the report the Indian telecom market is highly-dynamic and characterized by low Average Revenue per User (ARPU) and high churn rates. The telecom industry witnessed the launch of 3G, Broadband Wireless Access (BWA), and Mobile Number Portability (MNP) in the recent past, and these are expected to drive industry growth in the coming years.

Recent developments in the industry are pushing the TSPs to increase their focus on acquiring customers profitably and retaining them. They are now focusing on strengthening the Value-Added Services (VAS) portfolio, ensuring rapid go-to-market for new services; and enhancing customer experience as the means to enable profitable growth.

β€œIT in the Telecom sector would play a very crucial role in keeping the business active and competitive. The business dynamics will require a robust IT strategy ensuring enhanced customer experience,” said Nishchal Khorana, Head-Consulting, Information and Communications Technology Practice, Frost & Sullivan, South Asia and Middle East.

He added that large amounts of investments involved, will require telecom providers to engage closely with the vendors and prioritize the IT investments based on a well-drawn out road map.

The study highlighted that telecom operators are looking at making their system environment more scalable and flexible to become more agile and adapt to changes quickly. TSPs are also focusing on offering superior service quality to customers and improve their margins and are increasing attention towards optimizing their network operations.